Robert Wayne Pearce has spent over 45 years fighting for defrauded investors, recovering more than $175 million for his clients. As the founding partner of the Law Offices of Robert Wayne Pearce, P.A., he’s achieved a remarkable 99% success rate in investment loss recovery cases.
With the explosion of AI-enabled scams and record-breaking FINRA arbitration awards in 2024-2025, Jonathan Pierce (JP) of Fireball News sat down with Attorney Pearce to discuss the evolving threat landscape facing California investors, particularly seniors who are increasingly targeted by sophisticated fraud schemes.
JP: Bob, thanks for taking time to speak with us today. I know you’re incredibly busy – I saw you just wrapped up another major arbitration case.
Pearce: Happy to be here. Actually, we just settled that one last week – another structured product case. It’s been a wild year with all these new AI scams on top of the traditional fraud we’re seeing.
JP: Before we dive into the heavy stuff, I’m curious – after 45 years doing this, what made you specialize in investment fraud and open your practice?
Pearce: You know, I started at the SEC back in 1980, and I kept seeing how devastating these frauds were to regular people. When you see someone lose their entire retirement to a dishonest broker, it stays with you. I realized I could make more of a difference representing investors directly in California and nationwide.
JP: Well, let’s jump right in. The FBI just reported that Americans over 60 lost $4.9 billion to fraud in 2024 – a 43% increase from the previous year. California leads the nation with over $643 million in elder fraud losses. What’s driving this explosion?
Pearce: It’s a perfect storm. California has 4.2 million seniors with substantial retirement savings, making them prime targets. But the game-changer is AI technology. We’re seeing deepfakes of Elon Musk promoting fake investments, voice cloning for “grandparent scams,” and crypto schemes that are virtually irreversible. The average loss is $33,915, but I’ve seen clients lose everything – $700,000, even over a million.
JP: The AI threat sounds like science fiction. How does it compare to traditional broker fraud?
Pearce: The numbers are staggering – 40% of high-value frauds now involve deepfakes, with $4.6 billion lost to AI-enabled crypto scams. But traditional broker misconduct is equally devastating. We just saw the largest FINRA arbitration award ever – $132.5 million against Stifel for unsuitable structured notes. That wasn’t high-tech fraud – just old-fashioned greed dressed up in complex products.
JP: $132 million? That’s incredible. What made that case so significant?
Pearce: The arbitrators awarded $79.5 million in punitive damages for “egregious conduct.” These structured products were marketed as “conservative” but carried hidden risks and 4.75% commissions. I’ve handled hundreds of these cases – this verdict validates what we’ve argued for years about their unsuitability for retirees.
JP: You’ve personally recovered over $100 million for Puerto Rico bond investors. Are people still suffering from that crisis?
Pearce: Absolutely. Over 1,850 arbitration cases were filed between 2013-2016. Brokers put entire portfolios into Puerto Rico bonds, often using margin to leverage positions. When the market collapsed, overleveraged accounts were wiped out. The debt restructuring only achieved 29% recovery rates – investors lost 71 cents on the dollar unless they pursued arbitration. I got one family $5.9 million including $1.5 million in interest.
JP: The August 2024 market volatility devastated margin accounts. How bad was it?
Pearce: Worse than COVID – the fastest volatility spike ever recorded. Margin requirements tripled overnight. Traders lost 30-50% in a single day from forced liquidations. We just settled a $4 million case against Fidelity for improper COVID-era liquidations. Despite the client promising $9 million in cash, they liquidated everything, causing cascading losses.
JP: What traditional violations are you seeing most?
Pearce: Churning is rampant. One broker generated $1.5 million in commissions from a single account – the client needed 30% returns just to break even! Unsuitable recommendations generated 853 FINRA cases last year, mostly involving high-commission products like REITs and variable annuities that are completely inappropriate for retirees. You need to keep an eye on all your brokerage statements and if in doubt, ask! Then if in even more doubt, speak with a qualified securities/investment fraud lawyer!
JP: California has strong elder protection laws. How do they help?
Pearce: California’s Elder Abuse Act provides punitive damages, attorney fees, even pain and suffering damages. The “knew or should have known” standard is much easier to prove than bad faith. Starting in 2026, new laws will mandate 3-day delays on suspicious transactions, giving families time to intervene.
JP: With Bitcoin ATM fraud up 99%, can these cryptocurrency losses be recovered?
Pearce: Honestly? Once crypto is transferred, it’s essentially gone. The FBI recovers only 32% of fraudulent transfers, and only if you act within 24-72 hours. If someone wants you to use a Bitcoin ATM, it’s a scam. Period. No legitimate institution uses crypto ATMs.
JP: FINRA arbitration filings dropped 27% in 2024. Is fraud decreasing?
Pearce: No, that’s mostly due to rule changes. Customer cases still comprised 65% of filings, with an 84% success rate for monetary recovery. California remains busy – Los Angeles handled 224 cases, San Francisco 92. These aren’t frivolous claims – breach of fiduciary duty led with 1,252 cases.
JP: The SEC collected a record $8.2 billion in remedies. Is enforcement working?
Pearce: Those numbers are misleading – one crypto case was $4.5 billion alone. Enforcement is reactive. By the time the SEC acts, investors have already lost billions. That’s why private arbitration is crucial for actually getting money back to victims.
JP: What are the biggest red flags investors should watch for?
Pearce: For tech scams: unsolicited contact, pressure to act immediately, cryptocurrency payment requests, guaranteed returns. For broker misconduct: excessive trading, investments you don’t understand, heavy concentration in one sector, or complex products like structured notes. If your broker discourages questions, that’s a huge red flag.
JP: After 45 years, what keeps you going?
Pearce: Every case is someone’s life savings, their dignity. When we recover millions for a family whose retirement was destroyed, that’s what matters. My 99% success rate speaks for itself, but it’s really about restoring security to people who’ve been victimized.
JP: Last question – any advice for our readers?
Pearce: Trust your instincts – if something feels wrong, it probably is. Never make decisions under pressure. And if you’ve been victimized, don’t wait. FINRA has a six-year limit, but evidence disappears. Don’t let embarrassment stop you from fighting back. You have rights, you have remedies, and with the right representation, you can recover.
